Second-hand car sales increased as cash-strapped consumers stayed away from the new vehicle market

He added; “With the recent weak performance in the new car market, it is very positive to see that consumer appetite for second-hand electric vehicles remains so strong.

“Demand for our platform has grown rapidly this year, especially among middle-aged electric cars.

“They are currently flying 10 days faster than the rest of the used car market, showing how affordability will play a vital role in the UK’s electrification.”

But SMMT chief executive Mike Hawes warned that the growth of the used market was “dependent on a healthy new car market, particularly for electric vehicles”.

SMMT is lobbying the Government to provide greater financial incentives for consumers to buy electric vehicles, amid concerns that manufacturers will now have to discount each car by an average of £5,500 to get it out of showrooms. The industry has warned that such reductions are not sustainable.

Mr Hawes said: “Giving consumers the confidence to switch from the petrol or diesel vehicles they are familiar with requires trust and incentive, otherwise many new car buyers will be left desperate, inevitably limiting used car availability and leading to a diminishing market affordability.

“This will harm drivers, the economy and the environment; a review of support for the switch and the regulations aimed at enabling it will become an urgent priority.”

The Government’s main policy to encourage the uptake of electric vehicles, known as the zero-emission vehicle (ZEV) mandate, imposes sales targets for new cars on manufacturers. Companies face fines for failing to meet these targets, leading to suggestions that some are rationing sales of petrol and diesel cars to avoid penalties.

Second-hand cars represent the vast majority of the passenger car market in the UK, with around four fifths of all sales involving a second-hand vehicle.

The number of second-hand purchases increased by more than 330,000 in the first nine months of 2024, reaching a total of 5.89 million.